Paxos will be holding your PayPal's Bitcoin - page 2.

taufik123

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Quote from: mk4 on October 23, 2020, 09:07:14 AM

Let's be realistic here. A lot, and when I say a lot, I mean A LOT of eCommerce websites accepts PayPal, but only a very very small minority accepts bitcoin directly.

Sure, direct bitcoin payments is the way to go, but were obviously simply not there yet.

clearly still not there and still a minority of payments, because it is constrained by regulatory issues and risks that bitcoin has. Paypal is big because many platforms use paypal as the best way of payment, but when PayPal adopts crypto, maybe it will slightly change the way of making payments on paypal.
Payments using crypto can be made in paypal and then will be converted back to FIAT, so the service provider will not accept crypto directly, but the results of the Crypto to Fiat conversion.

Users are not allowed to send their crypto or make transfers between accounts or outside paypal, they will remain in your account until you sell them.

hatshepsut93

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I'm not surprised that PayPal doesn't even hold any Bitcoin, at this age everyone tries to outsource as much as possible, like in the past the website owners owned actual server machines, but nowadays you just buy a hosting service. And managing Bitcoin wallets is not an easy task, countless hacking incidents are a proof to that, so most of the traditional companies that will try to get into Bitcoin will be using custodial services.

vapourminer

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what is this "brake pedal" you speak of?

Quote from: Artemis3 on October 23, 2020, 10:18:11 AM

Not your keys, not your coins. Its as simple as that.

agreed

Quote from: Artemis3 on October 23, 2020, 10:18:11 AM

Don't buy with Paypal, because all you will get is some sort of promise that they are held by Paxos, now you have to trust two companies...

Bitcoin is about not trusting anyone. Therefore, when you buy bitcoins, they either enter your own wallet or you might as well assume you have been scammed.

Seriously stop thinking Paypal is "allowing the masses" access to bitcoin. Its actually the opposite, by doing this they are tainting Bitcoin's name. Bitcoin is not this, this is what the banks and other financial institutions do with fiat and assets all the time. You are not buying "gold", you buy some sort of paper that says you somehow own gold, but in the small letter it says you can't actually change it for gold (Just like the old US banknotes).

there will be enough people now exposed to it who will be curious about the real bitcoin. as of course they cant send or receive to a real wallet from paypal but they may not even want that at the start. it can wait.. and let them watch what it does. may take time but enough will get it and buy real coins and keep in their wallets.

gotta start somewhere.

Ayiranorea

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This is how purse.io had its service offering for Amazon. It is a joint operation, and same as that is the Paypal's partnering with paxos. These services from Amazon might easily reach more users as paypal is a much established payment system available for cross border payment. A mistake from any one of the company will destroy the reputation of both the firms. In short security is a major issue with bitcoin, paypal needs to be more specific in handling its security system.

Artemis3

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Not your keys, not your coins. Its as simple as that.

Don't buy with Paypal, because all you will get is some sort of promise that they are held by Paxos, now you have to trust two companies...

Bitcoin is about not trusting anyone. Therefore, when you buy bitcoins, they either enter your own wallet or you might as well assume you have been scammed.

Seriously stop thinking Paypal is "allowing the masses" access to bitcoin. Its actually the opposite, by doing this they are tainting Bitcoin's name. Bitcoin is not this, this is what the banks and other financial institutions do with fiat and assets all the time. You are not buying "gold", you buy some sort of paper that says you somehow own gold, but in the small letter it says you can't actually change it for gold (Just like the old US banknotes).

These two could even collude doing fractional reserve practices. This is not good.

kryptqnick

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Quote from: mk4 on October 23, 2020, 08:33:27 AM

Quote from: bitmover on October 23, 2020, 06:53:29 AM

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

Sure. Let's just not forget that to use bitcoin on the PayPal platform, we're not required to deposit every single bitcoin we have LOL(once this option is available in the future). Just like with custodial wallets, of course we'd only deposit "pocket" amounts; just enough money to pay with it once you want to buy something online.

Yeah, I think it's a wise solution. If I find something I want to buy, and I can pay with PayPal, but there's no other option for Bitcoin payment, I'd probably transfer BTC to PayPal and spend it on what I want to buy. I think it's better than not using Bitcoin for payments. But, to be honest, I'd feel more comfortable with PayPal being responsible for the money in the account, not a crypto exchange I've never used.
I also wanted to bring up another issue that caught my eye. Namely, it's that Paxos is for US customers. I've looked into the article to find out more, and apparently this Bitcoin feature will first appear only to US citizens. Maybe it's just me, but I didn't realize that it's a US-only thing for the near future.

tsaroz

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This is a good news for both Paypal and Paxos. Increase in business without the conflict of interest. Could even be a good news for Paypal user depending on what commission both of these companies take. Even if it's on a higher side, people would cheerfully use it as it would bring convenience and security to buying of crypto. I was frightened of thinking how Paypal are going to handle crypto, but with Paxos, I believe it would be lot better.

thirdkiller

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PayPal just started working with Paxos instead of something new? This is not the best news.

GreatArkansas

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Now, with this latest trend on Bitcoin and more on positive news for Bitcoin and the whole cryptocurrency.
I am glad that there is/are involvement of other altcoins, unless this Paxos which I am glad they are just a stable coin, no pumps or dumps will happen with this stable coin, no one will take advantage of this news, like some "buy the rumors, sell the news" things.

mk4

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Quote from: witcher_sense on October 23, 2020, 08:50:46 AM

What about direct bitcoin payments to buy something online? I see no point in involving additional fee collectors.

Let's be realistic here. A lot, and when I say a lot, I mean A LOT of eCommerce websites accepts PayPal, but only a very very small minority accepts bitcoin directly.

Sure, direct bitcoin payments is the way to go, but were obviously simply not there yet.

witcher_sense

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Quote from: mk4 on October 23, 2020, 08:33:27 AM

Sure. Let's just not forget that to use bitcoin on the PayPal platform, we're not required to deposit every single bitcoin we have LOL(once this option is available in the future). Just like with custodial wallets, of course we'd only deposit "pocket" amounts; just enough money to pay with it once you want to buy something online.

What about direct bitcoin payments to buy something online? I see no point in involving additional fee collectors.

sunsilk

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I've missed this information about the recent news about bitcoin and PayPal's integration. But if every deposit of bitcoin will make automatic conversion to Paxos, why do we have to deposit on them? it makes no sense if someone trusts PayPal to hold their bitcoin then they'll just convert it to a stable coin.

Users who understands that concern like us means a lot and we would really take care of our funds. But to those that are riding the hype and doesn't know the risk that it has behind, they're innocently liking the situation.

mk4

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

Sure. Let's just not forget that to use bitcoin on the PayPal platform, we're not required to deposit every single bitcoin we have LOL(once this option is available in the future). Just like with custodial wallets, of course we'd only deposit "pocket" amounts; just enough money to pay with it once you want to buy something online.

stompix

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

So, after all, PayPal Bitcoin service will just be an integration with an exchange. Your coins will be in Paxos.

It's more like PayPal's exposure to your holdings will be backed by BTC held by Paxos, at least for now.

Quote from: OmegaStarScream on October 23, 2020, 07:18:53 AM

If you read the quoted page, you will notice that the word "risk" is all over the place. So IMO, I don't think their reputation would be harmed if something bad happens. It's the user's responsibility to read the TOS and understand the risks and limitations.

This fails into unfair ToS and means about zero in court, if a "cyber theft' or anything else happens and people are losing money. They are just telling you that the amount or its corresponding USD value is not insured, so there is no normal procedure to be reimbursed as in traditional banking with either the FDIC or DGS (deposit guarantee schemes as we have in the EU). That paragraph will not prevent a judge to find them guilty and force them to pay the lost sums if they are found guilty of negligence in a court, the only difference being that they might now have with what to pay up!

Findingnemo

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Quote from: OmegaStarScream on October 23, 2020, 07:18:53 AM

Quote from: https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc

Your Crypto Assets are not insured or guaranteed by the FDIC, Securities Investor Protection Corporation (SIPC) or any other public or private insurer, including against cyber theft or theft by other means.

If you read the quoted page, you will notice that the word "risk" is all over the place. So IMO, I don't think their reputation would be harmed if something bad happens. It's the user's responsibility to read the TOS and understand the risks and limitations.

So people are responsible if there is any hacks. Embarrassed

Maybe not much people aware of this so its better to spread among this quote to the guys who are excited about Paypal allows crypto payments.

witcher_sense

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Q: Why have they partnered with PayPal?
A: Paxos wants "a brighter and open financial future" for society.

Quote

Blockchain technology has forever changed financial markets and the way we conceive of monetary assets, but is still in its early days. As companies like PayPal enter the space, they need a performant and trustworthy partner. We are proud to power this historic development in financial technology as we move society toward a brighter and open financial future.

https://www.paxos.com/paypal-paxos-bring-crypto-to-millions-of-users/?utm_medium=email&_hsmi=98015516&utm_content=98015516

Q: What does, according to Paxos, the brighter and open financial future mean?

A:

Quote

“We believe stablecoins and adoption of a Central Bank Digital Currency are critical to our financial infrastructure and maintaining our nation’s leading economic position.”

   “We believe stablecoins can address the systemic issues that exist in the antiquated plumbing of our financial system.”

   “Stablecoins bring cost savings and speed to everyone – from the biggest financial institutions to the smallest consumers.”

   “We deliberately designed our stablecoins to maintain the privacy and open access of physical dollars, while decentralizing the ledger. Central Bank Digital Currencies could follow the same design.”

   “Supporting growth and innovation with a US CBDC would facilitate the necessary upgrades to our financial infrastructure, reduce systemic risk, increase inclusion for all Americans and reinforce our values and the long-term position of the US dollar.”

https://www.paxos.com/paxos-ceo-co-founder-charles-cascarilla-testifies-to-senate-banking-committee/

There is no room for bitcoin in Paxos' future. Don't trust them with your bitcoin. Not your keys, not your coins.

bitmover

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Quote from: Oshosondy on October 23, 2020, 07:14:44 AM

Even, I can not make use of PayPal why talking abkut using cryptocurrencies as a payment method, bitcoin and altcoin payment have been easy for me since I started knowing about crypto generally. If it is not my key, it is not my coin is the say. Exchanges can be hacked at any time, while Paxos is an exchange. I will advice people to have this at the back of their mind and never forgotten it, custodial services will only make your coins less safe.

I agree with you.

But as I said in another post, there are still reasons to use Bitcoin with Paypal.

Paypal is largely accepted (more than bitcoin). So, theoretically, bitcoin is now a payment method in every website that accepts paypal.

Quote from: OmegaStarScream on October 23, 2020, 07:18:53 AM

If you read the quoted page, you will notice that the word "risk" is all over the place. So IMO, I don't think their reputation would be harmed if something bad happens. It's the user's responsibility to read the TOS and understand the risks and limitations.

Who read TOS? Grin

I believe mass adoption will inevitably lead to mass custodial services. As Hal Finney once said, it is possible that in the future most transaction will happen off chain, and mostly big players will be making blockchain transactions. Like in this case with PAxos/PayPal, most transactions will be happening only inside paxos system (merchants and customers using paxos via paypal), and no blockchain transactions. Paxos/PayPal may even be fractional reserve of bitcoins (making 2x more bitcoin than they really have).

Quote from: Hal on December 29, 2010, 08:38:40 PM

Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.
...
I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.

dansus021

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Quote from: Oshosondy on October 23, 2020, 07:14:44 AM

Exchanges are susceptible to hack, Paxos even if not yet hacked before does not mean it can not be hacked. Even, I can not make use of PayPal why talking abkut using cryptocurrencies as a payment method, bitcoin and altcoin payment have been easy for me since I started knowing about crypto generally. If it is not my key, it is not my coin is the say. Exchanges can be hacked at any time, while Paxos is an exchange. I will advice people to have this at the back of their mind and never forgotten it, custodial services will only make your coins less safe.

and another paypal news but i don't know if paypal backed by paxos Grin

and yes no system is safe back in the days there a lot big exchanges got hacked and u still need cold wallet to save ur funds

OmegaStarScream

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Quote from: bitmover on October 23, 2020, 06:53:29 AM

So, after all, PayPal Bitcoin service will just be an integration with an exchange. Your coins will be in Paxos.

I didn't know about that. PayPal is taking some risks here, especially its reputation is on the line.

Exchanges can be hacked. Exchanges are sometimes shady. I don`t trust any of them my bitcoins, and now I see that I wouldn't trust PayPal as well.

So, holding bitcoin in PayPal you are literally holding in Paxos.

The risk of getting hacked is always there unless they decide to give control over the private keys to their users. It doesn't matter if they're holding the funds themselves or using a third party service for that.

Also:

Quote from: https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc

Your Crypto Assets are not insured or guaranteed by the FDIC, Securities Investor Protection Corporation (SIPC) or any other public or private insurer, including against cyber theft or theft by other means.

If you read the quoted page, you will notice that the word "risk" is all over the place. So IMO, I don't think their reputation would be harmed if something bad happens. It's the user's responsibility to read the TOS and understand the risks and limitations.

Oshosondy

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Exchanges are susceptible to hack, Paxos even if not yet hacked before does not mean it can not be hacked. Even, I can not make use of PayPal why talking abkut using cryptocurrencies as a payment method, bitcoin and altcoin payment have been easy for me since I started knowing about crypto generally. If it is not my key, it is not my coin is the say. Exchanges can be hacked at any time, while Paxos is an exchange. I will advice people to have this at the back of their mind and never forgotten it, custodial services will only make your coins less safe.

Topic: Paxos will be holding your PayPal's Bitcoin - page 2. (Read 446 times)